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2015/08/15

Top threats 2016.


What are the threats to the fall of the Chinese stock market to the global economy and for Russia? I think that the most difficult times ahead. The Chinese economy has been the main engine of the global economy. China bust the consumption of oil, energy, gas and industrial metals, which in the rest of the world declined. This artificial governamental input has repeatedly created speculative investment in the capital markets for the past 36 years leading to boom & bust economy and markets (see chart).
This 36-year global credit boom and resulting slowing economic growth lead to an investors' 'crisis of confidence' in government debt and public sector solvency. I am afraid that China is not able to solve that. 9 months until the collapse of the Chinese market that will be trigger to global Great Crisis. As oil prices forecast: 40 dollars per barrel. This level of support at the lower boundary of the range of the bear. Falling oil to 40 and then to 35 and even up to $ 30 a barrel to happen precisely because of China.

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